Accessibility is increasingly influencing tenant demand, occupancy rates and long-term property value.
Image: Sandi Kwon Hoo / DFA
Offices located near major transport routes and transit nodes are becoming increasingly valuable because they help reduce commuting costs and improve the daily experience of employees.
Companies that take a long-term view of where their offices are located, and how accessible they are, will be better positioned to manage both cost pressures and employee wellbeing over time, says Scott Thorburn, national asset manager at Redefine Properties.
He says as fuel price volatility continues to disrupt economies globally, South African businesses are being forced to confront a reality that extends far beyond short-term cost increases.
“While recent geopolitical tensions have brought fuel adjustments back into focus, the bigger question is not how companies respond today, but how they prepare for what is becoming a recurring challenge.”
The property development, owning and management company says rising fuel costs are not a once-off event. They are part of a broader pattern of volatility that businesses need to plan for, it adds.
Before the war in Iran started, petrol cost R20.30 per litre and diesel R18.14 per litre, says Hayley Parry, the money coach and facilitator at 1Life’s Truth About Money.
As of Wednesday, Parry says that number is up to R26.63 for petrol and R32.10 for diesel, representing increases of over 30 percent and 75 percent from those earlier levels, respectively.
“This is known as a classic cost shock because it is a huge number, and for people whose transport costs already account for a large portion of their budget, it will obviously have a significant negative impact on households.”
According to Thorburn, this is especially relevant as employees feel the compounded impact of rising transport costs on their disposable income.
He says longer commutes are not only more expensive, but also contribute to fatigue and reduced productivity, placing additional pressure on both individuals and businesses.
At the same time, he says the conversation around workplace models continues to evolve.
Rather than a binary choice between working from home and the office, many organisations are exploring more flexible, decentralised approaches, he adds.
“Hub-and-spoke models, which allow for smaller office nodes closer to where employees live, are gaining attention as a practical solution that balances collaboration with cost efficiency.”
According to Redefine, rising fuel costs are not a once-off event. It says these are part of a broader pattern of volatility that businesses need to plan for.
Companies that take a long-term view of where their offices are located, and how accessible they are, will be better positioned to manage both cost pressures and employee wellbeing over time, it says.
At the centre of this shift is a renewed focus on accessibility, the company adds.
The company says its data shows that the majority of employees prefer a hybrid working model. This reinforces the need for office networks that are flexible and well-located, rather than centralised in a single, often less accessible node, it says.
Importantly, Redefine says accessibility is increasingly influencing tenant demand, occupancy rates and long-term property value. It says well-located buildings are outperforming more isolated office parks, as businesses prioritise convenience and cost efficiency in response to ongoing economic pressures.
Redefine adds that its portfolio is strategically positioned within key business nodes, with a strong focus on connectivity and accessibility. This allows us to support tenants as they adapt to changing workforce dynamics and rethink how and where work happens, it says.
As the cost of living continues to rise, businesses have a responsibility to consider the full impact of their location decisions, Thorburn says.
He says future-focused organisations are already reviewing their footprint to ensure it is resilient, flexible and aligned with the realities their employees face.
“While fuel price increases may dominate headlines in the short term, they point to a much broader shift. For businesses willing to act strategically, they present an opportunity to build more robust, efficient and people-centric workplace models that can withstand future disruptions.”
In this context, the asset manager says where and how businesses operate will increasingly define their ability to remain resilient, with thoughtful location decisions playing a meaningful role in easing pressure on both businesses and their people.
Meanwhile, the Leapfrog Property Group says with petrol prices going up on Wednesday, for many households, every kilometre now counts.
It says rising fuel costs do not just affect the monthly budget. They can also change the way you think about where you live, how far you commute and what kind of lifestyle makes sense for one's family, they add.
“When buying or selling, location matters more than ever. Being closer to work, schools, shops, public transport, and everyday essentials can make a real difference to your long-term costs and quality of life.”
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